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As the global race for clean energy and electrification accelerates, Europe finds itself at a crossroads. The continent’s ambitions to lead in electric vehicles (EVs), renewable energy, and advanced manufacturing are under pressure due to a critical supply chain bottleneck: rare earth elements. These metals—particularly neodymium and praseodymium (NdPr)—are essential for EV motors, wind turbines, and other high-tech applications. Yet the European Union (EU) sources nearly all its rare earths from a single country - China. China currently controls around 60% of global rare earth mining and over 90% of the processing capacity. For the EU, this dependency translates into significant vulnerability. Recent Chinese export controls on rare earth magnets and upstream materials have reinforced these concerns. In April 2025, Beijing introduced new export licensing rules that led to temporary delays in shipments, sending ripples through EU industrial supply chains. From EV manufacturing to wind turbine assembly, the risk of supply interruptions has triggered urgent calls for diversification and resilience. Several European auto-supplier plants have already shut down, with more outages coming, said the region's auto supplier association, CLEPA. The average electric vehicle uses about .5 kg of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency. German headquartered wind turbine maker Siemens Gamesa is looking to reduce its dependence on China in some critical parts of its supply chain with the company nearly 100% dependent on China for rare earths and permanent magnets, which are among the critical materials needed to make wind turbines. Strategic Response: Policy, Partnerships, and the Critical Raw Materials Act The EU has responded with a multifaceted strategy. Central to this is the Critical Raw Materials Act (CRMA), introduced in 2023. The Act sets ambitious 2030 targets: extracting at least 10% of critical raw materials domestically, processing 40% within the EU, and recycling 25%. It also aims to ensure no more than 65% of the EU's annual consumption of any strategic raw material comes from a single country. While these targets are a long way from being met—especially for rare earths—they have galvanized action. The EU is investing in mining and refining projects, supporting recycling infrastructure, and developing strategic partnerships with resource-rich countries like Namibia, Canada, and Australia. Notably, Sweden recently announced the discovery of Europe’s largest rare earth deposit, though commercial production remains years away. Building Resilient Supply Chains: Offtake Agreements in Action European industries are also taking direct action. Companies are signing offtake agreements with rare earth producers outside China to lock in long-term supplies.
The Road Ahead As Europe scales up its electrification and climate goals, reducing rare earth dependency on China has become not just an economic necessity, but a strategic imperative. The combination of policy initiatives, international partnerships, and forward-looking industry contracts is laying the foundation for a more resilient supply chain. The EU’s efforts to diversify and secure rare earth supply are already influencing global investment flows and reshaping industrial strategies. By locking in new sources and investing in processing, Europe is moving toward a future where its green and digital ambitions are not held back by critical material shortages. 
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Several publicly listed Australian life science companies have demonstrated strong European growth and performance, highlighting what is a key export success for Australia. Industry leaders across biotechnology, pharmaceuticals, medical technology, and diagnostics – from giants like CSL and ResMed to emerging players – are leveraging European operations to drive growth. Below we examine the market strategies and European expansion activities of these companies. CSL: Biotech Leader Expands Footprint in Europe CSL Ltd (ASX: CSL), Australia’s largest biopharmaceutical company, reported a net profit of US$2.91 billion for the 2024 fiscal year, an 11% increase in constant currency over the prior year. Strategically, CSL’s 2022 acquisition of Switzerland-based Vifor Pharma has bolstered its European presence. The newly formed CSL Vifor division delivered modest growth in iron therapy sales and is continuing to grow volume in Europe despite generic entrants. CSL Vifor is a global leader in iron deficiency and iron deficiency anaemia therapies, with a history dating back to 1872, starting in Switzerland. This European contribution helped CSL exceed forecasts and reinforced its confidence in sustaining double-digit earnings growth in the medium term. The Vifor integration, along with CSL’s flu vaccine unit Seqirus, has solidified CSL’s footprint across EU markets as it executes on global expansion plans. ResMed: Strengthening European Market Position ResMed (ASX: RMD), a global leader in sleep apnoea and respiratory devices founded in Australia, has also seen solid success in Europe over the past year. ResMed expanded strategically beyond devices: it acquired Germany’s MEDIFOX-DAN in late 2022, a €958 million out-of-hospital care software firm. This move boosted ResMed’s software-as-a-service segment in Europe. Europe is a vital market for ResMed, where the company maintains strategic hubs across key countries including France, Germany, the United Kingdom, Spain, and the Netherlands. These hubs support core operations such as sales, marketing, customer service, and research and development. In addition, ResMed collaborates closely with healthcare professionals and providers throughout Europe to ensure broad access to its respiratory care solutions and digital health services. Cochlear: Hearing Technology Gains Ground in Europe Cochlear (ASX: COH) is an Australian-based maker of implantable hearing devices. In 2024 the company announced strong growth in the US and Western Europe following the launch of its new Nucleus 8 sound processor. This product launch spurred market growth and share gains in Europe, as Western European clinics adopted the Nucleus 8 for both adult and paediatric patients. The European market for cochlear implants is experiencing significant growth, with an estimated 500,000 users and around 25,000 new implants each year. Sonic Healthcare: Diagnostics Expansion Across Europe Sonic Healthcare, a large Australian medical diagnostics company, has pursued an ambitious European growth strategy while navigating a post-COVID landscape. In late 2024, Sonic announced a deal to acquire Germany’s LADR laboratory group for €423 million, adding roughly €370 million in annual revenue and broadening Sonic’s footprint in Germany, Poland, and Finland. This followed a series of smaller acquisitions – about A$655 million worth – of lab practices in Germany, Switzerland and other markets, further strengthening Sonic’s European presence. The LADR deal was one of the largest acquisitions Sonic has made as it seeks to ramp up its presence in Europe and save pathology costs by merging with other players. One analyst predicted the deal would give Sonic 30 to 35 per cent market share in Germany, one of its core markets. Sonic Healthcare made 20 per cent of its revenue from Germany in the fiscal 2024 year, the company’s third-largest market after the US at 24 per cent and Australia at 22 per cent. Telix’s Rapid Growth in Europe Telix Pharmaceuticals (ASX: TLX) continues to grow European sales. The company’s flagship product Illuccix (a prostate cancer imaging radiopharmaceutical) gained adoption across Europe following regulatory approvals. Trajan Group: Expanding Analytical Science in Europe Trajan Group Holdings (ASX: TRJ), an Australian developer and manufacturer of analytical and life sciences products, has been making significant strides in the European market. The company operates a German subsidiary, Trajan Europe GmbH, which plays a pivotal role in its European operations. Trajan's European operations, particularly through its German subsidiary, are integral to its global strategy. The company's focus on analytical science and life sciences products aligns well with the European market's demand for precision and innovation in these fields. Summary The Australian life sciences sector is a vey strong global growth engine that looks set to continue to develop as the likes of Telix Pharmaceuticals and Mesoblast look to become global players in their respective fields. European retail, sophisticated and institutional investors have also shown an appetite for these ASX listed companies with solid buying on German markets for their dual-listed securities.  The Australian Financial Review wrote a very interesting article in March (18 March 2025 "Gold price fever pitch as fundies spruik 100pc gains") that Australian fund managers are racing to launch gold-focused investment funds, seizing on record-breaking prices that have pushed bullion past $US3000 an ounce for the first time. Gold has climbed more than 14% in 2025 alone, and 40% over the past year, with major banks repeatedly raising their forecasts. While gold stocks had lagged due to cost pressures, they are now gaining ground. The NYSE Arca Gold Miners Index is up 30.8% this year, with the ASX equivalent rising 29%. Collins St Asset Management is reopening its Special Situations Fund to new investors after a near 80% surge in 12 months, claiming select small- to mid-cap stocks could double in value if gold remains strong. L1 Capital has also launched a gold fund, targeting mid-cap companies in Australia and North America, using a long/short strategy to balance gains with downside protection. Notable holdings include Westgold Resources and Eldorado Gold. Meanwhile, the Victor Smorgon Group has debuted a second gold fund, eyeing returns over 50% in 18 months. Portfolio manager Cameron Judd believes the strategy’s concentrated picks of global miners offer “exceptional upside with low downside risk.” He also warned that Trump-era tariffs could spur stagflation, pushing gold to $US3600 an ounce. Macquarie and Bank of America share similar views, lifting long-term price targets to $US3500. Investor sentiment has followed suit, with net buying of gold ETFs this year reversing a four-year trend. February saw the largest monthly inflows into North American ETFs since July 2020, partly driven by a price arbitrage between New York and London markets. To meet growing local demand, Global X is launching a new ETF tracking gold in Australian dollars, set to begin trading by the end of March.  A 2024 study by the World Gold Council found that 38% of German investors have bought or held gold—making it the third most popular investment after savings accounts and stocks. Their reasons echo those of central banks and institutional investors: gold protects against inflation, is easy to trade, offers better long-term returns than cash, and helps diversify portfolios. As of April 21, 2025, gold prices have soared past US $3,400 per ounce—a record high. The 12% gain in the past month and 45% jump over the past year is driven by safe-haven demand amid global trade tensions and a weakening U.S. dollar. Germany’s deep-rooted relationship with gold remains strong. The Deutsche Bundesbank holds the world’s second-largest gold reserves, behind only the U.S. Federal Reserve. These reserves reflect both strategic foresight and a cultural memory shaped by hyperinflation and economic turmoil, reinforcing gold’s appeal as a stable, tangible asset. Germany's affinity for gold—rooted in history, economics, and psychology—continues to shape both private and institutional investment strategies as the global outlook remains uncertain. BNP Paribas recently highlighted five reasons for continued bullishness on gold and these are some of the reasons also cited by German gold investors.
German and European investors continue to be very strong buyers of global gold exploration and mining companies with a dual listing on Frankfurt Stock Exchange. Some of these include:   On 25 March 2025, the European Commission unveiled a list of 47 Strategic Projects under the Critical Raw Materials Act (CRMA). These initiatives aim to fortify the EU’s critical raw materials value chains and enhance the bloc’s strategic autonomy in securing essential resources.
Understanding the CRMA and the Role of Strategic Projects The Critical Raw Materials Act, which entered into force in May 2024, is a cornerstone of the EU’s strategy to address growing concerns around the supply of key raw materials essential for technologies in renewable energy, defense, batteries, and aerospace. Materials such as lithium, cobalt, and nickel are vital, but the EU currently relies heavily on third countries for their supply, processing, and recycling. To address these vulnerabilities, the CRMA establishes clear benchmarks to be met by 2030:
Selection and Benefits of Strategic Projects Applications for Strategic Project status opened in 2024. Projects were evaluated by independent experts based on technical feasibility, financial and sustainability metrics, alignment with CRMA criteria, and classification under the United Nations Framework Classification for Resources. Following this initial assessment, the European Commission created a shortlist, which was then reviewed by the Critical Raw Materials Board—composed of representatives from EU Member States and the European Parliament (as an observer). After consultation, the final list of 47 Strategic Projects was formally adopted. These projects benefit from two significant advantages:
A Snapshot of the 47 Strategic Projects The designated Strategic Projects span 13 EU Member States and reflect diverse stages of the raw materials value chain:
The designation of these 47 projects marks a significant milestone in the EU's efforts to secure the raw materials that underpin its green and digital transitions. As implementation begins, close attention will be paid to how effectively these projects are supported—and how they help reshape the EU's strategic position in global supply chains. Australian Projects The following projects have been awarded Strategic Projects status where there is an ASX listed company involved:
Germany’s outgoing parliament on Tuesday approved a sweeping increase in government borrowing, passing legislation that includes significant changes to the country’s strict debt rules. The move is aimed at bolstering defense capabilities and reviving economic growth in Europe’s largest economy. The legislation, proposed by Chancellor-in-waiting Friedrich Merz’s conservatives and the center-left Social Democrats (SPD), outlines the creation of a €500 billion ($546 billion) fund dedicated to infrastructure development and economic recovery. It also includes changes to borrowing rules to support defense spending and aid for Ukraine. To secure the necessary two-thirds majority, the coalition partners integrated last-minute demands from the Greens party, a key player in ongoing government formation talks following last month’s election. The legislation will now proceed to the Bundesrat, Germany’s upper house representing the country’s 16 states, which is expected to vote on Friday. Senior officials from the conservatives and the SPD have expressed confidence that the bill will pass. According to Merz, leader of the center-right Christian Democratic Union (CDU), the exceptional borrowing is justified under the unique circumstances created by what he called “Vladimir Putin’s war of aggression against Europe.” Under the proposed package, defense spending exceeding one percent of GDP will be exempted from the constitutional debt brake, a move aimed at strengthening Germany’s military capabilities. Additionally, aid for Ukraine will fall under this exemption, potentially unlocking billions of euros for the embattled country. “The decision we are taking today can therefore be nothing less than the first major step towards a new European defense community,” Merz stated. He emphasized the importance of involving non-EU countries such as the UK and Norway, while also advocating for European manufacturers to receive reliable and predictable defense orders. Beyond defense, the package dedicates €500 billion to boosting Germany’s economy, with 20% of that amount committed to combating climate change — a critical demand of the Greens party. Furthermore, borrowing restrictions for Germany’s 16 states are to be relaxed, enabling billions more to be directed toward local infrastructure projects. The adoption of this ambitious package marks a significant victory for the incoming coalition and is expected to provide financial stability over the coming years. Its success comes after the collapse of the previous SPD-led coalition government in November, partly due to fiscal challenges. The Bundesrat’s vote on Friday will be the final hurdle for the transformative package, which promises to reshape Germany’s economic and defense landscape for years to come. In 2024 global biotech companies in Europe saw generally strong demand from European retail, sophisticated and institutional investors. Interest was especially strong in those companies with a dual-listing on Frankfurt Stock Exchange. Choosing the right IR partner in Europe is critical for companies looking to engage with, and nurture trust from, European investors. Biotech investor relations (IR) is fundamentally different from IR in other industries. Unlike traditional companies valued on near-term profitability, biotech firms operate in a high-risk, long-term development cycle where value is tied to future potential rather than immediate revenue. Successfully engaging with the investment community requires a strategic, specialized approach. We are seeing an increasing appetite from EU investors for quality global biotech and life sciences companies with a dual-listing on Frankfurt Stock Exchange. Technology: Translating Innovation into Investor Confidence A biotech company's technology is its most valuable asset, but early-stage biotech innovations are often unproven. A common pitfall is being too immersed in the science, making it difficult to clearly articulate your value proposition to investors. The ability to explain your technology’s uniqueness, origins, and competitive advantage in a compelling yet accessible way is essential. While many biotech investors have scientific or medical backgrounds, your messaging must remain concise, strategic, and investment-focused. We work with specialist biotech experts in Germany that create detailed articles in easy-to-understand language for German equity media publications. Managing Risk: A Clear Roadmap Through Development and Regulation Biotech investments come with inherent risks, from drug development and regulatory hurdles to commercial viability. Investors need to understand how your company plans to mitigate these risks. A strong IR strategy requires a transparent and well-structured narrative, outlining your pathway through clinical development, regulatory approval, and market adoption. Clarity on these key milestones builds investor confidence and distinguishes your company from competitors. Demonstrating Opportunity: Credibility and Market PotentialThe life sciences industry presents immense growth potential, but credibility is key when defining your market opportunity. Investors expect biotech companies to provide realistic, data-backed projections of potential market size, adoption rates, and competitive positioning. While bold projections can be persuasive, they must be defensible—your ability to justify revenue potential and peak sales estimates will directly impact how investors model your future value. Meeting HNW/FO investors face-to-face in Europe is important. Many global companies present at EU events such as BioEurope and this also open up opportunities for an EU investor roadshow in cities such as Frankfurt, Munich or Zurich. Financial Strategy: Planning for Capital Market Expectations Most biotech companies rely on external funding throughout their lifecycle, requiring a proactive approach to capital markets. Investors anticipate strategic fundraising aligned with key milestones, such as positive Phase 2 or Phase 3 clinical data. A well-structured IR strategy ensures your company is positioned for sustainable growth while meeting investor expectations for financial planning and execution. When meeting DACH region HNW/FO investors it is important to be able to clearly articulate a company's capital requirements, strategy, cash flow management and vision. Why the Right Investor Relations Partner Matters Given the complexity and unique challenges of biotech IR, choosing the right investor relations firm is crucial. A strong European IR partner will not only help craft a compelling investment thesis for EU investors but also navigate market expectations, engage the right investors, and optimise your communications strategy. With the right European IR strategy and support, your life sciences company can maximize European investor confidence, secure capital efficiently, and develop long-holding and engaged investors in Europe. In Europe we collaborate with a company's home IR firm to ensure a clear and consistent message across global markets. We have deep relationships with DACH region financial journalists and article writers to nurture engagement and interest with biotech, life sciences and impact investors in Europe. There are 12 million equity and ETF investors in Germany alone - this is an important market for biotech, medtech and life sciences companies to engage with.  h the increasing complexity of European capital markets and the digital-first mindset of today’s investors, it is vital to find a partner who understands how to excel in this evolving landscape. In Germany - where we work with Australian, North American and UK companies to engage with European retail and sophisticated investor - the competition for investor dollars is the strongest it has ever been. Excellence, connections, and on-ground expertise are essential. We collaborate with Tier-1 German and European Investor Relations professionals and Roadshow providers and content creators to help ensure your European IR strategy is a success. The New Era of Investor Relations The digital revolution has reshaped how companies and investors interact. Companies need to engage in real-time dialogue through webcasts, live chats, and digital platforms. The competition for investor attention is fierce, and a successful IR strategy must be holistic in nature. An effective IR program is not just about quarterly updates – it involves nurturing and cultivating long-term relationships that withstand the market’s difficulties. Trust and credibility derive through consistent, transparent communication. Investors should know a company’s narrative and strategy, believe in the board and management, and want to stay for the journey. Building a successful investor relations strategy Companies should look to an investor relations firm that brings expertise, creativity, and a deep understanding of how to connect with today’s investor.
The Right Partner Can Be a Game-Changer Here at Austlinx, we assist with our European partners to create a program to highlight a company’s strengths, establish trust, and engage with European retail, sophisticated and institutional investors.  We have compiled a list of some the most traded ASX companies in with a dual listing on Frankfurt and German exchanges for August 2024. This list only includes buying on Frankfurt, Tradegate, Berlin, Stuttgart – and the main German trading exchanges. The table excludes EU Institutional buying as this will generally occur on home exchange where liquidity is better.  The standout performer is Droneshield (ASX: DRO) whose narrative has resonated very strongly with German and European investors.
Specialising in counterdrone technologies, Droneshield serves military, government, law enforcement, and critical infrastructure sectors. The company’s solutions include radio frequency sensing, AI, machine learning, and electronic warfare. Its new radio frequency artificial intelligence (RFAI) technology offers improved drone detection by reducing false alarms and accurately tracking drones at a lower cost. Unlike current systems, DroneShield’s RFAI can detect drones at greater distances, even over water, enhancing performance while lowering costs. DroneShield’s success has led to its technologies being included in Australia’s $20 million aid package to Ukraine, where they are used on the frontlines. The company also secured a $4.7 million order from a Swiss client for VIP protection and expanded its RFAI capabilities. Drone and defence tech continues to receive considerable newsflow here in Europe and we are also seeing other companies in this space engage strongly with EU investors. Rare Earth stocks such as Lynas Rare Earths (ASX: LYC) are also of major interest for EU investors as imports account for almost 100% of the over 18,000 tonnes of rare eraths used each year in the EU. In 2022, China accounted for the largest share of rare earth element imports with 40%, was second at 31% and Russia was in third place with 25%. In 2024 Lynas Rare Earths achieved significant milestones, including securing a variation to its Malaysian operating licence, allowing for continued cracking and leaching operations in Malaysia, and starting production at its new Kalgoorlie Rare Earths Processing Facility. The facility's construction and commissioning were completed in just over two years. Lynas reported revenue of $463.3 million and a Net Profit After Tax (NPAT) of $84.5 million for FY24. NdPr production decreased by 8% due to the major works program in Malaysia, The inclusion of nuclear energy in the EU taxonomy for sustainable activities is likely to boost uranium investment significantly. This, and global renewed interest in Uranium stocks, has likely contributed to strong trading from ASX uranium stocks such as Deep Yellow (DYL), Boss Energy (ASX: BOE) and Elevate Uranium (ASX: EL8). The EU taxonomy is a framework that guides investment towards environmentally sustainable activities. By classifying nuclear energy as a sustainable technology, the EU acknowledges its role in reducing carbon emissions and providing a stable energy source, complementing renewable energy. As a result of inclusion in the taxonomy, institutional investors and funds seeking to invest in sustainable energy projects are more likely to allocate capital to the nuclear sector. This, in turn, creates increased demand for uranium, the key fuel in nuclear reactors. We are seeing strong engagement for quality ASX and TSX listed Uranium stocks from EU investors. Biotech is back in 2024 with ASX company Clinuvel Pharmaceuticals (ASX: CUV) seeing solid volumes on Frankfurt and German trading exchanges. Clinuvel is a global speciality pharmaceutical group focused on developing and commercialising treatments for patients with a genetic, systemic, and life threatening acute disorders as well as healthcare solutions for specialised populations. We are optimistic about continued demand for quality dual-listed ASX stocks on German exchanges. An annual study by Deutsches Aktieninstitut as found that a total of 12.3 million German citizens save in stocks, stock funds and ETFs. That is over 17 percent of the population aged 14 and over - or just over one in six. Despite rising interest rates and persistent inflation, major geopolitical tensions and weak economic growth prospects, German investors largely remained loyal to stock investments. That is a good result according to the Deutsches Aktieninstut. The number of investors in funds and ETFs is around 10.3 million, which is the same as last year. Fund and ETF savings are the foundation of share saving. More than 80% percent of share portfolios contain funds or ETFs. The number of those who invest directly in shares, on the other hand, has decreased: only 4.7 million - 585,000 fewer than in 2022 - are invested in individual shares. This is about 5.5% of the population. This is somewhat in line with Australia where about 7% of population have between $5,001 and $10,000 invested in shares and 6% more than $100,000. An annual study by Deutsches Aktieninstitut as found that a total of 12.3 million German citizens save in stocks, stock funds and ETFs. That is 17.6 percent of the population aged 14 and over - or just over one in six. Compared to 2022, that represents a decrease of 570,000. Despite rising interest rates and persistent inflation, major geopolitical tensions and weak economic growth prospects, savers largely remained loyal to stock investments. That is a good result according to the Deutsches Aktieninstut. Funds and ETFs are an indispensable part of the share portfolio. Of the 12.3 million share savers, 7.6 million have only funds or ETFs in their portfolio. 2.0 million only invest in shares. 2.6 million savers combine both types of investment. The number of investors in funds and ETFs is around 10.3 million, which is the same as last year. Fund and ETF savings are the foundation of share saving. More than 80 percent of share portfolios contain funds or ETFs. The number of those who invest directly in shares, on the other hand, has decreased: only 4.7 million - 585,000 fewer than in 2022 - are invested in individual shares. Many savers remained loyal to stock investments. Loyalty to stocks - despite interest rate changes and turbulent times High inflation, as last seen in the 1970s, hit people with low incomes particularly hard and further limited their ability to save. Due to rising interest rates, fixed-interest investments again competed more strongly with stocks, funds and exchange-traded funds (ETFs) and, together with the record high of the DAX at the end of the year, provided incentives for profit-taking and reallocation in the portfolio. Overnight and fixed-term deposits celebrated a comeback. Against this background, the stable number of stock savers is a good result. The number of investors in equity funds and ETFs remained stable, while the number of shareholders fell in 2023. The analysis shows that it was more men who liquidated their stock investments. Women, on the other hand, were just as involved in the stock market in 2023 as they were in 2022. Older investors remained invested. Younger investors withdrew somewhat. In the long-term trend, however, the positive attitude towards stocks among younger people remains intact  |
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